Today's Jewelry Market: Two Target Shoppers with Divergent Needs
Challenge for marketers and retailers is to bridge the gender gap in the jewelry market

Stevens, PA November 17, 2004—Today's jewelry and watch market is rapidly growing, projected to rise 6.5 percent in 2004 to reach $57.1 billion. More than half of U.S. adults bought jewelry last year either for themselves or to give as gifts. A new consumer insights study from Unity Marketing, Jewelry Report 2004: The Who, What, Where, How Much and Why of Jewelry Shopping, (www.unitymarketingonline.com) explores the challenges and opportunities of marketing jewelry and watches.

"The traditional way people studied the jewelry and watch market has been product-specific, so they segmented the market according to fine jewelry and watches made from precious materials or costume/fashion jewelry," says Pam Danziger, president of Unity Marketing and author of Let Them Eat Cake: Marketing Luxury to the Masses—as well as the Classes.

"While our new study gives the traditional perspective, it goes further by taking a consumer-centric point of view—Who the customer is and what are their prime motivations in purchase? This gives marketers and retailers powerful insights into ways to connect for more sales and profits with their consumers and shoppers."

A key finding in the study is a gender gap in the jewelry market. "Women are from Venus and men are from Mars when it comes to jewelry shopping and buying," Danziger explains. "Men's and women's needs are so different, their desires so unique, that it is the rare jewelry marketer or retailer that can bridge the gender gap in the jewelry market."
Some key gender differences:

• Men buy mostly fine jewelry items as gifts for women; women buy jewelry mostly for themselves and are about equally likely to buy either fine or costume jewelry.
  
  
• Women's jewelry dominates the market, accounting for nearly 90 percent of the dollar volume in 2003; men's jewelry is only 10 percent of the total market. Men are the primary purchasers of what little men's jewelry is bought; women simply don't buy jewelry as gifts for men.
  
  
• Women buy more jewelry pieces per year, but men spend lots more money. Men who buy jewelry spend two-times more per year than women do.

"The Jewelry Report 2004 takes research findings like these and presents marketing opportunities for jewelry marketers and retailers to build more vital marketing programs and winning competitive strategies," Danziger says. "For example, the time is right to position jewelry as a gift for women to give a man. The emergence of the 'metrosexual' male who is interested in fashion and grooming, along with men's shopping magazines like Cargo and television make-over shows like What Not To Wear which feature men for fashion rehabilitation, signal a ripe opportunity to capitalize on this trend.

"Another prime opportunity is to develop strategies to increase women's spending on the jewelry that they buy themselves. Several key ways to get women to spend more per item which will in turn increase her annual spending on jewelry are highlighted in the report," Danizger concludes.

About the insights contained in the Jewelry Report 2004
The new consumer insights study, Jewelry Report 2004: The Who, What, Where, How Much and Why of Jewelry Shopping, provides details of qualitative focus group research and quantitative survey of 600 jewelry buyers, their shopping preferences, behaviors and attitudes. The study examines both the fine and costume jewelry market segments, as well as the preferences and behaviors of gift buyers and jewelry self-purchasers.

It provides details about jewelry choices and spending in four major categories of jewelry:

• Fine women's jewelry and watches
  
  
• Fine men's jewelry and watches
  
  
• Women's costume jewelry and watches
  
  
• Men's costume jewelry and watches.

For the fine jewelry categories, detail data is included about metal of composition, such as fine gold, platinum, sterling silver; and gemstones, such as diamonds, precious gemstones, such as rubies, emeralds, etc., pearls, and semi-precious stones, such as amethyst, topaz, etc.

It explores what type of jewelry is bought within each category, such as necklaces, earrings, bracelet, brooches and pins and how much shoppers spend on specific items of jewelry. Because of the level of purchase detailed analyzed, marketers and retailers can discover the typical pricing parameters for each type of jewelry.
Details about different types of jewelry shoppers are included, with special emphasis on the differing motivations and buying behavior of men and women, as well as gift buyers as compared with self-purchasers.

It reveals the stores where jewelry consumers prefer to shop, including profiles of the top ten jewelry retailers led by Wal-Mart, as well as the nation's leading jewelry retailers in these categories:

• Department stores
  
  
• Discount stores
  
  
• Chain jewelry stores
  
  
• Fashion clothing stores
  
  
• Non-stores, including mail order, television and internet.

The report reveals why shoppers choose the stores that they do to shop for jewelry. It explores many strategies for retailers to capture greater share of the jewelry shoppers' wallet.

Special features of this report are:

• Profile of the affluent, luxury consumer market for jewelry and watches
  
  
• 12 research-based Business Building Tactics to help jewelry marketers and retailers grow a more vibrant business.
  
  
• 7 major Marketing Opportunities that will mean greater success for jewelry companies and retailers that develop strategies to take advantage of these emerging opportunities.

About Pam Danziger and Unity Marketing
Pamela N. Danziger is a nationally recognized expert specializing in consumer insights with special emphasis on the luxury market. She is president of Unity Marketing, a marketing consulting firm she founded in 1992. Advising such clients as Lenox, Cartier, Herend, Crystal Cruises, Spring Air, Sears, The World Gold Council, The Conference Board and American Express, Danziger taps consumer psychology to help clients navigate and master the changing luxury marketplace. She is the author of the recent book, Why People Buy Things They Don't Need: Understanding and Predicting Consumer Behavior (Chicago: Dearborn Trade Publishing, 2004). Her new book, Let Them Eat Cake: Marketing Luxury to the Masses—as well as the Classes, (Dearborn Trade Publishing, $27, hardcover) will be in book stores January 2005.

She has appeared on CNN's In the Money, NBC's Today Show, CNBC, CNNfn, CBS News Sunday Morning, Fox News, NPR's Marketplace and is frequently called upon by the Wall Street Journal, New York Times, American Demographics, Women's Wear Daily, Forbes, USA Today, Associated Press, Los Angeles Times, Chicago Tribune for commentary and insight. Unity Marketing publishes market research and consumer insight studies on the luxury market, jewelry, garden, pet accessories, home furnishings, gifts and collectibles, greeting card and stationery, tabletop, art and wall décor markets, as well as the Luxury Business newsletter.

For media, Unity Marketing can make tables, charts and graphs available about luxury consumer confidence upon request.

Contact: Pam Danziger, 717-336-1600